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Drug Stocks Earnings Preview: GERN, RPRX, ICPT, AGIO & More

As we approach the end of this earnings season, investors will possibly heave a sigh of relief seeing that the going was not as bad as expected. Of the total S&P500 members, 88% will have reported results by the end of this week, thus making the picture even clearer. A major reason behind companies posting better-than-expected results during the quarter is perhaps already lowered expectations since the beginning of the earnings cycle. The recent decline in the U.S. dollar also aided matters. As a result, although estimates for the second quarter are still witnessing downward revisions, the decline is not as severe as last quarter.

Meanwhile, the medical sector started the year on a shaky note due to the sell-off witnessed by the biotech sector in the second half of 2015. Nevertheless, things are definitely looking up as the sector is still poised to beat both earnings and revenues estimates on an overall basis. In fact, as per our Earnings Trend report, the medical sector is one of the few sectors slated to record earnings growth this season.

What to Expect From These Drug Stocks?

Johnson & Johnson JNJ kick-started the season on a positive note, wherein its earnings surpassed expectations and the company raised its outlook for the year. Abbott Laboratories ABT followed suit. Swiss oncology major Novartis NVS, however, missed estimates. On the other hand, biotech majors Biogen BIIB and Amgen AMGN topped expectations, while industry bigwig, Gilead Sciences GILD disappointed investors’ expectations.

However, a few key stocks are still yet to report results. Let’s see how these stocks are poised ahead of their scheduled announcements tomorrow.

Geron Corporation GERN is scheduled to report first-quarter 2016 results on May 5. Being a development-stage company, investor focus is expected to remain on the company’s pipeline candidate, imetelstat. However, our proven model does not conclusively show that Geron is likely to beat earnings as this Zacks Rank #3 (Hold) has an Earnings ESP of 0.00%, which makes surprise prediction difficult. (Read more: Geron Q1 Earnings: What's in Store for the Stock?).

Repros Therapeutics Inc. RPRX is expected to report first-quarter 2016 results on May 5. The company focuses on the development of drugs for the treatment of hormonal and reproductive system disorders. With no approved products in its portfolio, investors are expected to focus on Repros’ progress with its pipeline candidates as well as the company’s cost projections. (Read more: Repros Q1 Earnings: What's in Store for the Stock?).

Intercept Pharmaceuticals, Inc. ICPT is scheduled to report first-quarter 2016 results on May 5. Intercept does not have any approved product in its portfolio, which means that investors will watch out for updates on its lead candidate, Ocaliva. The company has a disappointing track record so far, having missed estimates in three of the last four quarters. It currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -19.83%, making it highly unlikely for the stock to post an earnings beat. (Read more: Intercept: Stock Likely to Disappoint in Q1 Earnings).

Agios Pharmaceuticals, Inc. AGIO is scheduled to report first-quarter 2016 results on May 5. Being a development-stage biopharmaceutical company focused on the development of treatments for cancer and rare genetic metabolic disorders, investors should look out for pipeline updates. Agios’ performance so far has been disappointing, with the company missing expectations in three of the last four quarters. The company currently has a Zacks Rank #3 and an Earnings ESP of 0.00% which makes surprise prediction difficult. (Read more: What's in Store for Agios This Earnings Season?).

GW Pharmaceuticals plc GWPH is scheduled to report second-quarter fiscal 2016 results on May 5. GW Pharma’s lead drug, Sativex, is approved outside the U.S. for the treatment of spasticity associated with multiple sclerosis. Apart from pipeline updates, investor focus is expected to remain on the company’s guidance. Although GW Pharma’s Zacks Rank #3 enhances the predictive power of the ESP, its 0.00% ESP makes surprise prediction difficult. (Read more: What's Up at GW Pharmaceuticals  in Q2 Earnings?).

Conatus Pharmaceuticals Inc. CNAT is scheduled to report first-quarter 2016 results on May 5. With no approved product in its portfolio at the moment, investor focus is expected to remain on the company’s progress with its pipeline candidates. The company currently has a Zacks Rank #3 and an Earnings ESP of 0.00%, which makes surprise prediction difficult. (Read more: CConatus: Can the Stock Surprise in Q1 Earnings?).

AVEO Pharmaceuticals, Inc. AVEO is expected to report first-quarter 2016 results on Mar 5. Being a development-stage biopharmaceutical company, investors are expected to focus on pipeline updates. Our proven model does not conclusively show that AVEO is likely to beat earnings this quarter as the Zacks Rank #3 company has an Earnings ESP of 0.00%, making surprise prediction difficult. (Read more: Will AVEO Pharmaceuticals Surprise in Q1 Earnings?)

Stay tuned and check later on our full write-up on earnings releases of these stocks!

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NOVARTIS AG-ADR (NVS): Free Stock Analysis Report
 
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
 
ABBOTT LABS (ABT): Free Stock Analysis Report
 
GERON CORP (GERN): Free Stock Analysis Report
 
GILEAD SCIENCES (GILD): Free Stock Analysis Report
 
AMGEN INC (AMGN): Free Stock Analysis Report
 
BIOGEN INC (BIIB): Free Stock Analysis Report
 
REPROS THERAPEU (RPRX): Free Stock Analysis Report
 
AVEO PHARMACEUT (AVEO): Free Stock Analysis Report
 
GW PHARMA-ADR (GWPH): Free Stock Analysis Report
 
AGIOS PHARMACT (AGIO): Free Stock Analysis Report
 
CONATUS PHARMA (CNAT): Free Stock Analysis Report
 
INTERCEPT PHARM (ICPT): Free Stock Analysis Report
 
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